When Apply advanced rounding rules has been selected a check will be made on the un-rounded and rounded totals of each Director within each DLA account code.
Where a difference occurs the rounding amount will be allocated to the first Director with a balance within the same account code.
For Example (Illustration only):
Account Code |
Amount |
Rounded |
After Rounding |
Directors Loan Account - B/F (5400) |
|||
Director 1 |
(200.55) |
(201) |
(200) |
Director 2 |
(150.00) |
(150) |
(150) |
Director 3 |
(315.75) |
(316) |
(316) |
Total |
(666.30) |
(667) |
(666) |
Rounded Total |
(666) |
(667) |
(666) |
ROUNDING DIFFERENCE |
1 |
- |
Account Code |
Amount |
Rounded |
After Rounding |
Directors Loan Account – Capital Introduced (5401) |
|||
Director 2 |
(50.55) |
(51) |
(50) |
Director 3 |
(80.65) |
(81) |
(81) |
Total |
(131.20) |
(132) |
(131) |
Rounded Total |
(131) |
(132) |
(131) |
ROUNDING DIFFERENCE |
1 |
- |
Director |
B/F |
Introduced |
Total |
Director 1 |
(200) |
- |
(200) |
Director 2 |
(150) |
(50) |
(200) |
Director 3 |
(316) |
(81) |
(397) |
Total |
(666) |
(131) |
(797) |
The same rule is applied to DLA under current liabilities (account codes 5400, 5401 & 5402) and long-term liabilities (account code 5800). Where
The Director to which the rounding difference is allocated can NOT be changed.
See KB3094 - What are Advanced Rounding Rules? for more information.